ExxonMobil in talks to buy Jurong Aromatics' assets in Singapore

06-Apr-17

ExxonMobil is in talks to acquire Jurong Aromatics Corp to acquire JAC's assets on Jurong Island, Singapore. The U.S. oil company is the frontrunner to buy JAC which went into receivership in September 2015, Thomson Reuters publication Project Finance International reported. JAC's debt problems mounted amid the global commodities rout and it stopped operations at the end of 2014 to fix a technical issue. The plant was restarted in July 2016 under tolling agreements with BP and Glencore. JAC filed for receivership in September 2015, due to a breakdown in debt restructuring talks. The plant resumed operations in July 2016 under a tolling agreement. "While progress is being made, no agreement has been reached yet," as per a company spokesperson. ExxonMobil already operates a refinery and petrochemical complex in Singapore.

The complex, which revolves around a 100,000 bpd condensate splitter, also has capacity to produce 783,000 mtpa of jet fuel, 647,000 mtpa of light naphtha, 662,000 mtpa of gasoil, 283,000 mtpa of LPG, 35,000 mtpa of fuel oil, 46,000 mtpa of hydrogen and 18,000 mtpa of heavy aromatics, as well as petrochemical products including 800,000 mtpa of paraxylene, 400,000 mtpa of benzene and 200,000 mtpa of orthoxylene.
Borelli Walsh had been appointed the receivers and managers of JAC by lender BNP Paribas. Lotte Chemical Corp said in March that it had dropped out of the race to buy JAC.